Published on 26 May 2025

Singapore firm backs Ethiopian e-commerce startup

Improved payments and over 40m internet users set stage for e-commerce growth

Tina Mart, a new Ethiopian e-commerce platform focused on apparel, textiles and accessories, has secured US$150,000 in seed funding from Singapore-based Penataran Group in exchange for a 10% equity stake.

The rapid expansion of internet access across Africa has spawned a surge in e-commerce sites eager to tap into growing online consumerism. Nigeria (Jumia, Jiji), South Africa (Takealot) and Kenya (Kilimall) remain at the forefront of this revolution. Jumia, the Lagos-based online retailer, now operates in almost every major market on the continent and has become one of Africa’s best-funded e-commerce firms, raising US$150 million in 2014.

Several giant e-commerce players have entered Ethiopia. Nigeria’s Jiji is among the largest, while China’s KiKUU also maintains a strong presence.

Tina Mart is the latest venture by Ethiopian serial entrepreneur Ezedin Kamil, who previously founded software firms Ibex and Hex Labs. Tina Mart aims to tackle longstanding challenges in the sector by requiring vendors to meet conditions such as a four-day return policy, compliance with licensing rules, and sufficient inventory. The platform charges a 7% commission on sales and offers two-day delivery.

Ezedin met Penataran CEO David Halpert at the Indonesia-Africa Forum in Bali last year. The family investment office has backed more than 20 startups globally, with its African investments including fintech companies such as Egypt’s Halan and Nigerian-founded Flutterwave.

Indonesia Africa Forum 2024.

The Ethiopian e-commerce sector has long struggled with structural challenges. Early platforms that emerged following the 2012 rollout of 3G mobile internet in Addis Ababa faced persistent issues: unreliable logistics, limited digital literacy, weak payment systems and low consumer trust.

According to the E-commerce Ecosystem Report, Ethiopia is home to more than 80 e-commerce platforms, with significant growth spurred by the government's Digital Ethiopia 2025 strategy. This initiative has accelerated e-commerce adoption through increased internet access, boosting smartphone penetration and expanding digital payment solutions.

The report noted that the e-commerce sector has experienced recent shifts with the rise of specialised e-commerce and social commerce, trends that align with projection by Micheal Zakkour, founder of 5 New Digital that 70% of e-commerce sales will be mobile in 2025.

General findings from the report also showed that 58% of Ethiopian e-commerce firms generate annual transactions and revenue below US$10,000, reflecting early-stage operations with limited market reach. Meanwhile, firms earning between US$10,000 - US$500,000 are in growth phase, gradually scaling operations. The table below highlights the key characteristics distinguishing these two segments:

Further insights into the trends in the sector Ethiopian e-commerce are shown below:

Essentially, the report summarizes that Ethiopia's e-commerce sector is still in its early stages, with most platforms established within the last three years, reporting low transactions and revenue, and largely concentrated in Addis Ababa. Successful firms diversify their offerings, incorporating social and mobile commerce, while access to initial capital significantly impacts expansion. However, funding constraints remain a major hurdle, limiting scalability and innovation. User acquisition is also a key challenge, with platforms relying on referrals and word-of-mouth.Recent shifts in policy and infrastructure are changing the landscape. The number of internet users has climbed to more than 42 million, fuelled by cheaper data and broader mobile internet coverage. A major turning point came in 2021 with telecom liberalisation, as the government issued an US$850m license to a a consortium led by Kenya-based Safaricom, ending Ethio Telecom’s monopoly.

Digital payments infrastructure has also advanced significantly. Firms such as Chapa and ArifPay, enabled by new regulations allowing non-bank fintechs to operate, have helped e-commerce platforms integrate a wider range of payment methods.

Ethio Telecom’s Telebirr, developed with support from China’s Huawei, has also been a major catalyst for digital finance adoption in Ethiopia. With over 51 million users, the mobile money service has evolved into a super-app, enabling e-commerce platforms to build integrated ‘mini apps’ and tap into its large user base. Meanwhile, Safaricom’s rival service, M-Pesa Ethiopia, has gained more than 10m users and launched its own super-app, further expanding access for online sellers.

By comparison, Jumia’s US$150m seed round in 2014, modest by today’s standards, propelled it into a pan-African retailer. With US$150 000 in funding secured, Tina Mart has already set itself apart from unfunded rivals. Its niche focus on apparel lets it tackle sector-specific hurdles one at a time, possibly on the road to comparable success.

Singaporean backers should recognise how improved internet access, telecom liberalisation, and mobile-money super-apps are creating fertile ground for scalable e-commerce ventures in Ethiopia and broader sub-Saharan Africa. This presents a timely opportunity for e-commerce, fintech, and logistics players to establish early partnerships in the expanding market.

The sector’s funding gaps also highlights the need for venture capital investment.

References

‘Ethiopia awards telecom licence to Safaricom-led consortium’, Al Jazeera, 22 May 2021

‘Chart: Africa's E-Commerce Giants | Statista’, 27 May 2022

'Digital economy', International Trade Administration U.S. Department of Commerce, 18 September 2024

'Digital Ethiopia 2025 Strategy increases internet users by over 42 million – MInT', Fana Broadcasting Corporate, 14 December 2024

‘70% of all e-commerce sales will be mobile in 2025, says 5 New Digital's Michael Zakkour’, CNBC, 26 December 2024

'E-commerce Ecosystem Report Ethiopia Vol. 01', Iceaddis, 2024

'Orange MEA praises Telebirr’s role in Ethiopia’s digital transformation', MEA Tech Watch, 23 January 2025

'Ethiopia touts progress in digital transformation', Xinhua, 24 January 2025

'M-Pesa, LakiPay to enhance digital payments in Ethiopia', Connecting Africa, 18 March 2025

'Tina Mart kicks off with $150K pre-Seed investment from Singapore-based Penantran Group', Shega, 01 May 2025